|Paul Krugman in Lisbon|
Krugman talked to the media about all this Euro crisis thing, he said some interesting things like we (Portugal) have few options we're in a trap do our commitment with the Euro..and so with our creditors...the germans of course. Basically we have no light in the end of the tunnel...we're trapped!
Krugman said we only could have options in Berlin, or Frankfurt...this says a lot about who's rulling Europe right now: and it's so obvious!!!
And as days go by the unemployment rates grow in Portugal, Greece, Spain, Italy and so on and Germany is the only one doing fine, really fine...in fact their economy have never been this good since...since...2nd World War! Congratz german folk! How you do that? well...other countries import 60% of german exportations and now they are indebted and so they have to obbey to all of what germans say 'cause they got the money...basically this is the only explanation in my point of view.
It's ironic how Germany have been growing so much in 10 years of euro, and Portugal didn't grow anything, isn't it? We're a zombie economy!
Krugman said too that quit the Euro wouldn't be an option since our huge debt would increase even more, and there's a lot involved in this: it's the European process too.
Krugamn said a wise thing too he said that experts have been very busy making people understand all kind of sciences like astronomy, biology, physics, chemistry...but not economy which is crazy since economy really affects people's lives....well maybe politicians and bankers doesn't want us to know how they screw up our lives and make huge amounts of money with us...but it's just me saying...
A journalist said that the recession of 1930 ended with the 2nd World War, so should us fear any kind of conflict? Krugman said it was possible....well last year I heard Sarkozy and Merkell warning Europe that "if Euro falls, Europe falls and we can't guarantee another 50 years of peace and prosperity", I think it's more like saying: "do as we say or you'll be screwed!".
But then Krugman said this:
"I know people ask me why do I want lower wages..well, unfortunatelly Portugal has a very large external deficit and will have to improve its cost competitiveness and that means that the wages in Portugal have to lag behind Germany substancially. And that probably means some fall of wages here. So it's not nice but it's what it has to happen".
see and listen with your own eyes and ears: economia/krugman-agencia-financeira
Excuse me: our external deficit is very large!? What about yours? USA is the 2nd more indebted country in the world, only behind Japan!!! Which is an absurd since USA has almost none public institutions specially of health care..so where do you spend all the money? Oh...army, isn't it? (screwed-up-america).
And who's buying the USA debt are the chineses so...don't you think you could use all your knowledge helping your country instead???
And by the way europeans are kind of tired of USA financial terrorism with rating agencies so it would be cool if they just knock it off and try to solve USA huge, huge problems ok?
The explanation for rating agencies to downgrade almost all Europe countries recently (even Germany) is that Europe is doing things wrong and it's enough austery...in that way we all must agree.
Anyway I still not quite understand why China is buying USA huge debt, chineses became the USA banker..what's the point of finance USA economy when they spend rivers of money in army and making wars overseas?
Europe can be living hard times but thanks God Europe is not America, and Obama is right when said about USA that "we are not Portugal", and they can solve their crisis...funny it seems to be much more easier to solve the crisis of a huge country like USA than a small small country like Portugal...does that make any sense? There's not comparison we're 10 million peaceful people here and we definetely can put our economy growing ( if we just say germans to go screw themselves...but that's another question...anyway Obama is right!).
But here's the most incredible thing of all this: so Krugman came with his fellows from MIT to Portugal to study our economy here and just said that this was a "crazy place", so he knows Portugal since 1976...but what sure you don't know is that the minimum and medium wages here are by far much much much more lower than in Germany! You don't have no idea of how lower they are so that makes no sense you suggest us to cut our wages between 20% and 30% compared to german wages...
Let's do your homework research Krugman (that's what you should have done before speaking of things you don't know...even being a Doctor and a Nobel, and even if you're from MIT or Princeton):
This data are from Eurostat (2003):
Luxembourg: 1369 euros
Netherlands: 1249 euros
Belgium: 1163 euros
France: 1154 euros
United Kingdom: 1105 euros
Ireland: 1073 euros
USA: 877 euros
Greece: 750 euros
Malta: 535 euros
Spain: 526 euros
Portugal: 485 euros
Slovenia: 451 euros
Hungary: 212 euros
Czech Republic: 199 euros
About Germany, contrary to other countries, have no stipulated wage by law but their labor is the 3rd most expensive of Europe...and they're not less competetive because of that...in average each worker receives about 50,4 thousand euros per year, that means about 4200 euros per month!!! In average portuguese people receive about 700 or 800 euros per month and now our minimum wage is of 485 euros!!! Got that? WE ALREADY ARE UNDERPAID, WE RECEIVE SUBSTANCIALLY LESS THAN GERMANS, ABOUT 5 to 9 TIMES LESS! And even less than the greeks (about 750 euros of minmum wage), portugueses receive 486 euros.
So if Krugman says we must cut between 20% and 30% our incomes compared to german incomes that would mean that we should win between 840 euros (a 30% cut) and 1260 euros (30% cut)...this way we would win two times or more than we actually win and that would be nice, but Mister Krugman said: cut wages substancially...not rising them!
If we really cut between 20% and 30% the workers wages would stop receiving 800 euros to receive between 160 euros to 240 euros and those who win the minimum wage would receive between 145 euros (20% cut) and 97,2 euros (30% less). DO YOU THINK THAT ANYONE IN THE EURO ZONE CAN LIVE LIKE THAT??? NO! NO WAY!IT'S MATHEMATICALLY IMPOSSIBLE TO BE PAID LIKE IN BANGLADESH AND HAVE A LIFE STANDARD LIKE THE PARISIANS AND THE WEALTHY GERMANS!!!
But if Mr Krugman was talking about the politicians wages, the administrators and directores of public (and semi-public) enterprises wages...then all portuguese people would agree! Cut their wages!
But that's when Mr Krugman says even more: that we must stop the austery measures but isn't reducing this miserable wages the biggest austerity measure ever inflicted?.
But there's more, he keeps going on defending is point of view of reducing the portuguese wages to improve our competitive" but there's no need to be like in China".
So ,to me, what mr Krugman is really saying is: you, portugueses, have to win miserable salaries and pay to the germans, but there's no need to be so low as the chineses' wages! SO THANK YOU NOBEL! THANK YOU! YOUR PERSPECTIVE REALLY ENLIGHTENED US! THANK YOU SO MUCH!!!-.-